IFC HELPS SMALL BUSINESSES IN RUSSIA BY LENDING TO KMB BANK

Adriana Gomez 
Phone:(202) 458-5204 
Fax:(202) 974-4384 
E-mail: agomez@ifc.org 




Moscow, Russia, June 3, 2002—The International Finance Corporation, the 
private sector development arm of the World Bank Group, has signed an agreement 
to provide a five-year US$7 million loan to KMB Bank, a regional microfinance 
and SME bank in Russia, to support its portfolio growth.   

KMB is headquartered in Moscow but it has developed strong regional presence 
with five regional branches in St. Petersburg, Nizhny Novgorod, Novosibirsk, 
Omsk, and Samara, as well as thirteen representative offices.  In the past 
three years, KMB Bank has become a leading small and micro credit institution 
in Russia with over $100 million equivalent in outstanding loan portfolio. 

“This investment in KMB reflects IFC’s commitment to its global 
microfinance strategy of supporting commercially viable microfinance 
activities, while strengthening the financial sector in Russia,” said Peter 
Woicke, IFC’s Executive Vice President, during the signing ceremony with 
Reiner Mueller-Hanke, Chief Executive Officer of  KMB Bank. 

“Support for SMEs through sound financial intermediaries is a key component 
of IFC’s strategy in Russia.  With most of KMB’s business now generated 
outside of Moscow, IFC’s financing will support development of private SMEs 
and microenterprises in the regions of the Russian Federation whose investment 
and working capital needs are currently underserved by financial institutions,â
€ added Edward Nassim, IFC’s Moscow-based Director for Central and Eastern 
Europe. 

KMB is owned by EBRD, Soros Economic Development Fund, DEG, and Triodos-Doen 
and is managed by Internationale Projekt Consult GmbH, a financial services 
company with some 20 years of experience in managing and investing in SME and 
microfinance institutions in emerging markets.  In addition to the $7 million 
loan which was finalized today, IFC Board approved a $3 million IFC equity 
investment in KMB which is expected to become part of the next capital increase 
of KMB  in the summer of 2002. 

IFC’s mission is to promote sustainable private sector investment in 
developing countries, helping to reduce poverty and improve people's lives. 
 IFC finances private sector investments in the developing world, mobilizes 
capital in the international financial markets, and provides technical 
assistance and advice to governments and businesses.  Since its founding in 
1956 through the close of the last fiscal year on June 30, 2001, IFC committed 
more than US$31 billion of its own funds and arranged $20 billion in 
syndications for 2,636 companies in 140 developing countries.  IFC’s 
committed portfolio at the end of FY01 was US$14.3 billion.